OutdoorPartner Media announces largest quarterly revenue to date
TORONTO, August 15 - OutdoorPartner Media Corporation (TSXV: OPX) ("OutdoorPartner" or the "Company"), a leading alternative out-of-home media provider, today announced financial results for its second quarter ended June 30, 2007.
Highlights
• Revenue for the three month period ended June 30, 2007 increased to $2,033,276 from $126,653 for the three month period ended June 30, 2007. On a pro forma basis (assuming the acquisition of PPM occurred January 1, 2006), revenue for the three month period ended June 30, 2007 increased 62% to $2,033,276 from $1,252,201 for the three month period ended June 30, 2006. The Company recorded its best quarter to date, in terms of revenue, led by sales of payphone kiosk advertising, which also reached its highest quarterly level to date.
• EBITDA(*) loss for the three month period ended June 30, 2007 was $30,060. On a pro forma basis (assuming the acquisition of PPM occurred January 1, 2006), EBITDA(*) loss for the three month period ended June 30, 2006 was $163,426.
• Net loss for the three month period ended June 30, 2007 was $183,171 compared to a net loss of $384,213 for the three month period ended June 30, 2006.
• The Company executed its third Bluetooth campaign during the three month period ended June 30, 2007. Yahoo! Music developed the video content for the Pepsi campaign and over 25% of people responding to the Bluetooth prompt downloaded the full video content.
• On May 15, 2007, the Company closed a bought deal financing (the "Bought Deal"). An aggregate of 5,950,000 Common Shares were issued from treasury by way of short form prospectus at a price of $0.90 per share. On June 15, 2007, the exercise of the over-allotment option (the "Over-allotment") tied to the Bought Deal closed. The total aggregate gross proceeds of the Bought Deal and Over-allotment were CAD$6,158,250.
• The Company successfully increased its average campaign size and built on its base of Fortune 500 clients by adding new clients in new sectors. Advertising clients in the six months ended June 30, 2007 included: U.S. Navy Reserve; Captain Morgan; AT&T; Anheuser Busch; Simmons Bedding; Rembrandt; Pepsi; Stella Artois; Nissan; Verizon; HBO; Sony Pictures; and Sun Microsystems.
"Despite being the Company's seasonally softer half, OutdoorPartner generated over $3 million in revenue in the first half and also recorded its largest quarter to date, in terms of revenue," stated Mark Brodkin, President and Chief Executive Officer of OutdoorPartner. "The Company has written contracts representing fiscal 2007 revenue of over $6.7 million as it enters its strongest sales season - this bodes well for the remainder of the year."
Subsequent Events
• In July, the Company was contracted to deliver a US$1.4 million, Hispanic-targeted campaign in over 20 U.S. markets for a Fortune 100 client.
• The Company extended its PartnerBin pilot program in New York City. Under the terms of the expanded, two-year agreement, the Company has the right to place up to 125 PartnerBins in the 125th Business Improvement District, located in Manhattan.
• In August, the Company hired Rob Figa as Vice President of Sales. Mr. Figa is a 20-year veteran of the outdoor advertising industry. He previously held positions at Gannett Outdoor (now CBS Outdoor), Eller Media (now Clear Channel Outdoor) and Wilkins Media Company, where he spent nine years as a member of the executive management team. While at Wilkins, Mr. Figa opened a New York office and managed the company's Baltimore branch.
• The Company acquired the assets of Mira Outdoor Media, a Los Angeles-based company offering payphone kiosk advertising to local advertisers in Los Angeles, Las Vegas, San Francisco and Phoenix. In addition, Mira's founder has joined OutdoorPartner Media and will lead the development of the Company's local advertising business nationwide.
"Year-to-date, the average payphone kiosk advertising campaign size has grown to over $220,000, an increase of 59% over 2006," stated Brodkin. "The growth in campaign size reflects an increasing acceptance of payphone kiosk advertising and its ability to deliver results."
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Financial Highlights
OutdoorPartner Media Corporation
Unaudited Interim Consolidated Statements of Operations
(US dollars)
Three months ended
June 30, 2007 June 30, 2006
Revenue $ 2,033,276 $ 126,653
Direct Costs 1,074,063 22,404
-------------------------------
Gross Profit 959,213 104,249
Sales, General & Administrative expenses 989,273 492,806
-------------------------------
EBITDA(*) $ (30,060) $ (388,557)
Amortization 105,477 20,867
Taxes 38,324 -
Stock-based compensation 22,668 -
Other 682 7,261
Interest expense/(income) (14,040) (32,472)
-------------------------------
Net loss $ (183,171) $ (384,213)
-------------------------------
OutdoorPartner Media Corporation
Reconciliation of EBITDA(*) to Net loss
Pro Forma(1)
3 months period 3 months period
ended ended
June 30, 2007 June 30, 2006
EBITDA(*) $ (30,060) $ (163,426)
(Add)/Deduct
Taxes 38,324 -
Amortization 105,477 29,598
Stock-based compensation 22,668 -
Interest (14,040) (18,902)
Other 682 5,050
-------------------------------
Net loss $ (183,171) $ (179,171)
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(1) Assuming the acquisition of Prime Point occurred January 1, 2006
(*) EBITDA is not an earnings measure recognized by GAAP in Canada or the
United States and does not have a standardized meaning prescribed by
GAAP. It should not be considered a substitute for income (loss) from
operations, net income (loss), cash flows from operating activities or
other statement of operations or cash flow statement data prepared in
accordance with GAAP. Management considers EBITDA to be a meaningful
supplement to operating and net income as a performance measure that
facilitates period-to-period operating comparisons and allows the Company
to compare its operating results with its competitors. In addition,
management believes that such a measure is commonly used by securities
analysts, investors and other interested parties to evaluate a company's
financial performance. The Company's method of calculating EBITDA may
differ from the methods used by other companies and accordingly, EBITDA
references contained herein may not be comparable to similar measures
presented by other companies.
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About OutdoorPartner:
OutdoorPartner operates in the alterative out-of-home advertising industry. The Company provides its advertising clients with an opportunity to post messages on its inventory of litter/recycling receptacles ("PartnerBins"), payphone kiosks and lifeguard towers. OutdoorPartner's payphone kiosk inventory consists of over 700,000 payphone kiosks located in all of the top 50 Designated Market Areas ("DMAs"). The Company's PartnerBins are currently located in ten U.S. communities, including: New York City, Atlanta, St. Louis and Baltimore. The Company's lifeguard tower inventory is located on the beaches of Southern California. In addition to static billboard advertising, OutdoorPartner provides advertisers with the opportunity to push rich digital content from its payphones to consumers' Bluetooth enabled mobile phones with a service called PrimeCasting. The Company's revenue is generated through the sale of advertising space on payphone kiosks, PartnerBins, and lifeguard towers and through the sale of the Company's PrimeCasting service. More information may be found by visiting www.outdoorpartner.com or www.primepointmedia.com.
This news release contains forward-looking statements regarding, among other things, OutdoorPartner’s beliefs, plans, objectives, strategies, estimates, intentions and expectations. Such statements are based on a number of assumptions which may prove to be incorrect, involve certain risks and uncertainties that are difficult to predict and, accordingly, are not guarantees of future performance. The future results of the Company or developments may differ materially from those expressed in the forward-looking statements contained in this news release, due to, among other factors, OutdoorPartner’s lack of operating profits, its dependence on key personnel, general economic conditions and other external events that may impact on customers’ advertising spending, competition from other out-of-home advertisers and other media and government regulation seeking to limit or restrict OutdoorPartner’s activities. More detailed information about these and other factors is included in OutdoorPartner’s 2006 Annual Information Form and other documents published or filed by, or on behalf of, OutdoorPartner from time to time with the Canadian securities regulatory authorities. Other than as required by law, OutdoorPartner undertakes no obligation to publicly update or revise any such forward-looking statements or information, whether as a result of new information, future events or otherwise.
For further information: Mark Brodkin, CEO, OutdoorPartner Media Corporation, 296 Richmond Street West, Suite 305, Toronto, Ontario M5V 1X2, Canada, T: (416) 602-1602, F: (416) 352-5070, www.outdoorpartner.com